Consumer Price Index Malaysia October 2018

CPI increased 0.6 per cent in October 2018 to 120.7 compared to 120.0 in corresponding month of the preceding year. The increase in the overall index was due to higher price for Housing, Water, Electricity, Gas & Other Fuels (+2.1 per cent), Food & Non-Alcoholic Beverages (+1.2 per cent), Restaurants & Hotels (+1.2 per cent), Education (+1.1 per cent) and Transport (+0.8 per cent). (Chart 1).

On a monthly basis, CPI increased 0.2 per cent as compared to September 2018. CPI for the period January-October 2018 registered an increase of 1.1 per cent as compared to the same period last year.

The overall index for Food & Non-Alcoholic Beverages which accounted 29.5 per cent in the CPI weights increased 1.2 per cent in October 2018. This was attributed by the food sub-group index of Vegetables (+3.0 per cent) and Fish & Seafood (+0.8 per cent). Meanwhile, the index for sub-group Sugar, Jam, Honey, Chocolate & Confectionery decreased 2.3 per cent, followed by index for sub-groups and Oils & Fats (-0.8 per cent) and Fruits (-0.4 per cent). The decrease was due to the index of goods which dropped in most states such as Chicken (-5.2 per cent), White Sugar (-3.1 per cent), Sweetened Creamer Milk (-3.1 per cent), Fresh Coconut Milk (-1.5 per cent), Grapes (-1.1 per cent) and Dried Chilly (-0.8 per cent).

Meanwhile, the index for Food Away From Home increased 2.7 per cent in October 2018 as against October 2017

In terms of overall CPI, four states surpassed the national CPI rate of 0.6 per cent recorded in October 2018 as compared to October 2017. The states were Wilayah Persekutuan Kuala Lumpur (+1.3 per cent), Negeri Sembilan (+1.1 per cent), Selangor & Wilayah Persekutuan Putrajaya (+0.8 per cent) and Pulau Pinang (+0.7 per cent). Johor showed the same rate as the national CPI.

The increase in the index for Food & Non-Alcoholic Beverages was reflected in most states in Malaysia. Three states recorded higher increases for Food & Non-Alcoholic Beverages index above the national index level (+1.2 per cent) in October 2018 as compared to the corresponding month in 2017. The index for Food & Non-Alcoholic Beverages rose 4.5 per cent in Wilayah Persekutuan Kuala Lumpur, followed by Negeri Sembilan (+1.6 per cent), Selangor & Wilayah Persekutuan Putrajaya (+1.4 per cent) while Pulau Pinang showed the same rate as the national CPI of this main group. (Chart 2)

Core index increased 0.4 per cent in October 2018, as compared to the same month of the previous year. Among the major groups which influenced the higher core rate were price increases for Housing, Water, Electricity, Gas & Other Fuels (+2.3 per cent), Food & Non-Alcoholic Beverages (+1.3 per cent), Restaurants & Hotels (+1.2 per cent) and Education (+1.1 per cent). Core index, which excludes most volatile items of fresh food, as well as administered prices of goods and services recorded changes ranging from -0.2 per cent to 2.2 per cent for the period January to October 2018 as compared with the same period of the previous year. (Table 2)